Business Bureau, Gulf Today
Picture used for illustrative purpose only.
With growing demand for electricity, especially to meet the requirements during peak summer, the Government of Iraq is accelerating its focus on strengthening the nation’s power infrastructure through two new agreements signed with GE.
A long-term partner committed to meeting the future electricity needs of the nation, GE signed the agreements, valued at over $1.2 billion, with the Iraqi Ministry of Electricity to execute the power sector projects that will secure reliable power supply across the country.
Accordingly, GE Gas Power will undertake contracts valued at $500 million for the upgrade and maintenance of key power plants in the country, which are mission-critical to sustain power supply of over 6,000 MW and scale up operational efficiency. Further, GE’s Grid Solutions, in a landmark agreement, will reinforce Iraq’s transmission network and interconnection with the electricity grid of Jordan, having secured a contract valued at $727 million.
In addition to delivering the scope of services, GE will also work with multiple export credit agencies to facilitate the discussion of financing over $1 billion for the projects.
In the presence of Mustafa Al Khadimi, Prime Minister of Iraq, senior officials of the Iraqi and US governments, the agreements were signed by HE Majid Al-Emara, Iraq’s Minister of Electricity and Michael Eshoo, Vice President & CFO, GE Gas Power.
A clear action plan for successful power generation Majid Al-Emara, Iraq’s Minister of Electricity, said: “Our primary focus is to deliver uninterrupted electricity, especially during summer months, to meet the needs of our people and industry. To achieve this, we have already rolled out a clear action plan. Bringing world-class technology, especially to upgrade our power plants, and to ensure their seamless operation is a critical part of this strategy.
The new agreements with GE, a leader in power technology, is an ideal fit for our requirements, and builds on the strong partnership we have with the company to deliver more power for the nation.” Scott Strazik, CEO for GE Gas Power, said: “GE has a long history of presence in Iraq, and we deliver on our promise to the nation and its people. In recent years, we have further accelerated our project execution to scale up and rebuild the country’s electricity infrastructure.”
“As demand for power increases in tune with a growing population and to support industries and developmental projects, identifying gaps and addressing them is our focal area. We are thankful to the Iraqi government for their confidence in our capabilities to deliver power where and when needed. The new agreements will contribute to a more reliable and stronger power infrastructure, which is the top priority of the government.”
Heiner Markhoff, Vice President and CEO of Grid Solutions at GE Renewable Energy, said: “This agreement is about more than electricity generation. It is about putting in place the necessary grid infrastructure and a sustainable approach to progress that will allow Iraq to truly drive forward positive change throughout the nation. We are incredibly proud to be able to continue to support the growth of a reliable and sustainable electricity infrastructure in Iraq. This partnership will be able to bring power to millions of people and enable economic development in the country.”
Upgrades, maintenance and service The service agreement is a mission-critical Maintenance & Upgrade programme between the Ministry of Electricity and GE Gas Power to execute the maintenance programme across multiple sites in Iraq. GE will deploy its latest technology at the sites to be identified by the Ministry such as parts, repairs and services for power plants in Basra, Mosul, Baghdad and Karbala among others, which will maintain the supply of over 6,000 MW of power. This builds on 1.575 GW of new capacity that GE added since December 2019, and the sustained delivery of 4.325 GW to meet peak summer demand.